Question

The current value of a property is $255,000, and it is assessed at 35% of its current market value. What is the amount of the real estate tax due on the property if the tax rate is $3.50 per $100 of assessed value?

Answer 1

Answer:

$3,123.75

Explanation:

First we have to calculate the assessed value of the property for the purpose of taxation, which is given as follows:

Assessed value=$255,000*35%=$89,250

No we have to calculate the tax rate for the assessed value of $89,250 using the following method:

(tax rate/$100)*assessed value

Tax rate=$3.50

Assessed value=$89,250

=($3.50/100)*$89,250

=$3,123.75